US health insurer Oxford Health Plans is to get $14.3m (£9.1m) in a settlement with some of its excess insurers to help pay off $225m (£143m) in settled shareholder lawsuits.
The Trumbull, Connecticut-based company has a remaining claim of approximately $23.9m (£15.2m), which it "intends to vigorously pursue" against one excess insurance carrier.
Oxford sued its insurers earlier this year, claiming they balked at paying their fair share in the settlement, also this year, of a slew of investor lawsuits dating back to 1997.
The shareholders had charged that they had been deceived about the company's finances after a precipitous drop in its stock price and an earnings slump.
Oxford struck a deal to settle the shareholder law suits for $225m. It has taken about $200m in charges against earnings in connection with the settlements.
In 1999, Oxford bought a $200m excess insurance policy. In relation to the settled shareholder suits, it recovered $25m from the first level excess insurance carrier and had remaining claims of approximately $41.8m against the other excess insurance carriers.
Oxford has agreed with some of the excess insurance carriers to settle approximately $17.9m of these claims for a total of approximately $14.3 million.
The insurance payment will be included in income for Oxford's third quarter ending 30 September.
